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Financial Relief

Canada’s six largest banks announced plans to provide financial relief to Canadians impacted by the economic consequences of COVID-19. This financial relief includes the option of temporarily deferring payments on a mortgage and line of credit^. We want you to know the facts and financial implications if you are considering payment deferrals.

We understand that our clients may be facing financial hardship, from job loss, to instability and the uncertainty ahead. We introduced relief programs for those impacted by the COVID-19 outbreak, to give clients the flexibility, and help free up cash flow today, so they can plan for your current and future needs.

Financial Relief for Personal Clients

RBC Client Relief Program

Up to 3 months of relief for your line of credit and up to 6 months for your secured line of credit (including Homeline Plan) may be temporarily available to you. This includes payments on the credit line portion of your Homeline Plan or on other credit lines. Such payment relief can help free up cash flow and can only be done with the help of an advisor. It’s important that you understand how such relief will impact your finances. While this option may be available to you, it may increase your interest costs and the outstanding balance on your line of credit. Before making any decisions, please evaluate your financial situation and priorities, understand your options, and book a call with one of our advisors using the online booking tool through RBC Online Banking. If you’re not enrolled in RBC Online Banking, click here for instant enrollment.

If you have a line of credit with RBC including

  • (a) a line of credit secured by real estate or investments, either as part of your Homeline Plan or stand-alone, or
  • (b) a personal line of credit,

you may qualify to either use your available credit to make monthly payments of interest, or defer up to three months of payments for your line of credit and up to six months for your secured line of credit (including Homeline Plan).

There may be different relief options available depending on the type of payment you are making and whether you have available credit on your credit line:

Blended payments: If you are currently making interest-only payments on your line of credit, are in need of additional relief and your account is in good standing, the following options may be available to you:

  • Switch to interest-only payments: Your line of credit can be converted to interest-only payments (and insurance premiums, if applicable) to reduce the amount of your current monthly payments. Your interest-only payments will not reduce the principal amount you owe.
  • If you Still have Available Credit on your Line of Credit: If you are unable to make interest-only payments and you still have available credit on your line of credit, the remainder of your available credit, up to your credit limit, can be temporarily used to pay your monthly blended payment. Payments made with available credit on a line of credit will be added to the total outstanding balance and interest will be charged on this amount. This means that interest will be charged on both the interest and insurance premium (if applicable) portion of your payment, at your annual interest rate.
  • If you are at or near your Credit Limit: If you are at or near your credit limit, you may be able to defer your blended payments for up to three months for your line of credit and up to six months for your secured line of credit (including Homeline Plan). This means that you do not have to make your blended payments during the relief period, but the deferred interest amount will continue to be added to your outstanding balance and interest will be charged on this combined amount at your annual interest rate. The unpaid interest, and interest charged on this amount, will appear on your monthly statement as “Interest Past Due”. Interest is not charged on the deferred insurance premiums.
    • Interest only payments: If you are currently making interest-only payments on your line of credit, are in need of additional relief and your account is in good standing, the following options may be available to you:

      • If you still have available Credit on your Line of Credit: If you have available credit on your line of credit, the remainder of your available credit limit, up to your credit limit, can be temporarily used towards your monthly payments. Payments made with available credit on a line of credit will be added to the total outstanding balance and interest will be charged on this amount at your annual interest rate. This means that interest will be charged on both the interest and insurance premium portion (if applicable) of your payment, at your annual interest rate.
      • If you are at or near your Credit Limit: If you are at or near your credit limit, you may be able to defer your interest-only payments for up to three months for your line of credit and up to six months for your secured line of credit (including Homeline Plan). This means that you do not have to make payments during your relief period, but the deferred interest will be added to your outstanding balance and interest will be charged on the deferred interest at your annual interest rate. The unpaid interest, and interest charged on this amount, will appear on your monthly statement as “Interest Past Due”. Interest is not charged on the deferred insurance premiums. Please note: If you defer payments under this option, your monthly payment amount must first be converted to a blended payment.
        • Important: If you choose to defer payments, at the end of the deferral period, you will have the option to either commence paying the blended payment amount that you set prior to the deferral, or revert to paying interest only. In order to convert back to interest-only payments, all unpaid interest, all interest charged on that amount, and outstanding insurance premiums (if applicable) must first be paid in full.

          Before making any financial decisions regarding your line of credit payments, please contact one of our RBC advisors who will provide you with options and advice for your particular financial situation and priorities.

          You can also change your payment relief or deferral period at any time by speaking with an advisor and paying back all unpaid interest, all interest charged on that amount, and outstanding insurance premiums (if applicable). You can also resume your blended payments at any time before your relief period ends.

          Note: Deferring your payments on your credit line or using your credit limit to cover your interest and insurance premium (if applicable) may increase your interest costs over the life of your credit line. Speak to an advisor to evaluate your financial situation, priorities and needs.

          For relief on your Line of Credit: Please use our online booking tool through RBC Online Banking to schedule a time to speak with one of our advisors by phone.

          Update: For those clients who are at or near their credit limit who defer payments, with the result that interest is charged on deferred interest (noted as “Interest Past Due” on your monthly statement), RBC will provide a credit to assist with offsetting the interest charged on deferred interest payments during the deferral period. Eligible clients will receive this credit following the end of our deferral period, if their line of credit remains in good standing, has a balance outstanding and has not closed by the time the credit is applied. No action is required by you. We will process a onetime credit following the end of RBC’s deferral program. The credit will be made to your line of credit towards the end of the year.

Not enrolled in RBC Online Banking?

Click here for instant enrollment.

Additional Assistance or Other Questions on financial relief for personal loans:
If you are not enrolled in RBC Online Banking or unable to book an appointment using our online booking tool, you can request a callback for personal loan help.

Request a Callback from RBC

Frequently Asked Questions

RBC Client Relief Program

We apologize for the letter you received regarding an interest rate increase to your account. Please be assured that the rate increase is not being applied. The events surrounding COVID-19 are truly unprecedented and we understand how much they are disrupting the daily lives of Canadians. For important updates related to the COVID-19 outbreak and banking information, please visit RBC.com.

We will continue to offer our perspectives to help you navigate through these uncertain times Book an appointment online to speak with one of our advisors, to discuss your immediate needs. We’ll do our best to help you to feel more at ease.

If you are not enrolled in RBC Online Banking or unable to book an appointment using our online booking tool, you can request a callback from one of our advisors for assistance